SEBI said, Amrit Projects mobilised Rs10.38 crore while Magnox Infraprojects and Pinnacle Ventures collected Rs2.31 crore and Rs3.85 crore from investors
Market regulator Securities and Exchange Board of India (SEBI) restricted three companies -- Amrit Projects (NE) Ltd, Magnox Infraprojects Ltd and Pinnacle Ventures India Ltd -- from raising funds by issuing securities.
The regulator also barred the three companies and their directors from accessing the stock markets.
SEBI said it found that these companies had raised money through issue of preference shares and as a result of such activities had violated various norms.
While Magnox Infraprojects and Pinnacle Ventures are Kolkata-based companies, Amrit Projects is based in Guwahati, Assam.
In three separate orders, SEBI directed these entities not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
The companies and their respective directors have also been "prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders".
Besides, the companies and its directors have also been restrained from accessing the securities market, SEBI said in the orders.
They have also been asked not to divert any funds raised from public at large and provide full inventory of all their assets and properties.
SEBI observed that the companies had issued shares to over 50 persons which under the rules made it a public issue of securities and hence would require a compulsory listing on a recognised stock exchange, among other requirements.
In the order against Amrit Projects, SEBI's initial probe has found that the company had mobilised funds amounting to about Rs10.38 crore during the financial years 2009-10, 2010-11, 2011-12 and 2012-13.
Similarly, Magnox Infraprojects had raised Rs2.31 crore while Pinnacle Ventures had mobilised an amount of Rs3.85 crore from investors.
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